Cliffs Natural Resources (NYSE:CLF)
I own seven hundred shares of CLF. I am inclined to want to load up on this stock, but from the trend in the last 8 months, the company does not appear to be going anywhere. What is the short forecast for this company?
Thanks for the email. We Downtrended CLF on 6/22 @ $23.91 right after it fell below that 50-day moving average support line. After trying to rally back a few days later, it then continued its downward momentum as it failed to get back above that moving average which is now resistance. Through the month of April, the stock hovered around the $20 level which is likely to be the next area of support. $20.60 was also the low on 5/14 so watch for any break there before thinking of buying because that could lead to even lower levels. But you are correct the stock has been in a somewhat tight range over the past 8 months and in those cases it is often best to buy near the bottom of the range, if you are inclined to do so. Having said that, our users often wait until stocks go back into an uptrend according to our system but it depends on your level of aggressiveness.
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